Bangkok: Energy Minister Ekanat Promphan has outlined strategic mechanisms to manage Thailand's domestic oil prices in response to rising global prices, which have been influenced by escalating tensions in the Middle East. According to Thai News Agency, Ekanat confirmed that funds from refineries and investment funds will be utilized to control domestic oil prices and prevent any sharp increases that align with the global market trends. He assured the public that the domestic oil reserves are in a stable condition and will not face shortages.

Ekanat addressed the recent significant increase in all types of oil prices over the past week. He highlighted Thailand's ongoing efforts to employ a price reduction mechanism at the refinery level to offset costs at gas stations. Additionally, the Oil Fund is being leveraged to manage prices in accordance with market trends, aiming to avoid the dramatic fluctuations observed in the past. The Ministry of Energy is committed to daily monitoring of the situation to avert rapid and sharp price increases driven by market movements.

In response to inquiries about potential changes in domestic fuel prices, Ekanat stated that any adjustments would be a gradual process, depending on daily assessments of the situation. He assured that any price changes would not be sudden or drastic. Furthermore, he emphasized the stability of Thailand's oil supply, noting that domestic crude oil levels are sufficient and that refined oil reserves are nearly full, eliminating concerns of future shortages.

Ekanat elaborated on the criteria for assessing price adjustments, explaining that decisions would be made progressively. He recalled past strategies where reliance on Singapore prices was minimized by utilizing refinery funds to reduce costs. He cited the use of a mechanism during the Emergency Decree on Amending and Preventing Fuel Shortages to lower prices and mentioned that similar considerations are ongoing. He noted that 10.5 billion baht from the fund has been employed to reduce fuel prices at gas stations. The fund, which was previously in deficit before his tenure, had not been heavily utilized when fuel prices decreased. Ekanat reiterated the importance of using refinery-level mechanisms and the fund to stabilize prices and mitigate rapid fluctuations in response to global market conditions.